The scripts in this directory constructs the data in /Empirics_Estimation/Data/ folder.


/Data/ contains the data used
/Figures/ contains the figures generated by the code

STATA script:

* CPS_data_construct.do: generates cross-sectional earnings data (without detrending) from the raw CPS data. Saves the data as earnings_nodetrend.txt file.

R script:

* DataConstruction.Rmd: constructs data used for empirical estimation. It does detrending and inverse hyperbolic sine transformation on the earnings data.

* Unemployment_CPS_FRED.Rmd generates a plot of the inverse
hyperbolic sine transform (Fig A-6) and Fig A-4

